India to grow 7.2% in 2021: UNCTAD
Sees world economy growing at fastest pace in 50 years
The United Nations Conference on Trade and Development (UNCTAD) has pegged India's economic growth rate to hit a four-year high of 7.2 per cent for 2021 against a contraction of 7 per cent in the previous year.
At this rate, India would be the fastest-growing economy after China, which is projected to grow 8.3 per cent. Calculations are based on gross domestic product (GDP) at constant dollars in 2015.
It said the world economy is expected to undergo its fastest recovery in almost five decades, but warned that deepening inequities between advanced and developing countries threaten to undermine this. In its Trade and Development report released on Wednesday, UNCTAD projected India's economy to outpace all other major economies in the next year even though the growth rate would be slower at 6.7 per cent compared to this year's.
The report said the Indian economy, which experienced a contraction of 7 per cent in 2020, showed a strong growth of 1.9 per cent growth in the first quarter (Q1) of 2021 on the back of the momentum of the second half of 2020. It said the growth was supported by government spending on goods and services.